Exit Planning Techniques By Market
Selling a Forgings Business
You've heard the naysayers - now isn't the time to sell a forgings business. But what they don't know is that many entrepreneurs see forgings businesses as a smart business investment.
The buzz in the marketplace is that now isn't the right time to sell a forgings business. Consequently, sellers are holding their businesses off the market until they are sure the market will sustain their asking prices.
Undaunted by economic conditions, many forgings business sellers are achieving their sale goals through deliberate sale strategies.
Average Timeframes
It's rarely possible to sell a forgings business in a month or two. Although asking price and other factors contribute to sale time, it's difficult to predict how long your business will be on the market before you locate the right buyer. Before you can list your forgings business, you'll need to invest as much as a year in preparing it for prospective buyers. In a good market, an attractive forgings business can sell in as little as a few months, although it can take more than a year to find the right buyer after the business is listed.
Broker vs. No Broker
When selling a forgings business, you have two choices: Hire a broker to facilitate the sale or perform the sale unassisted. Is there a cost associated with hiring a broker? Sure - about 10% of the final sale prices. But a good broker will make selling your forgings business much less painful. You can also expect to receive a higher sales price for your business in a broker-assisted deal.
Buyer Concessions
In a tight economy, seller concessions are the name of the game. But that doesn't mean you can't push for buyer concessions to achieve a more favorable outcome in the sale of your forgings business. Although this scenario frequently plays out around seller financed deals, it's possible to push for a higher sales price or other form of compensation if you agree to mentor the buyer for a specified period of time. You can also choose to exclude certain items like equipment or inventory from the deal if the buyer isn't willing to meet your price expectations. By selling excluded assets on the secondary market, you can compensate for an anemic sale price.
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